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Aston Martin bondholders seek US discovery in UK debt fight
Two US-based holders of Aston Martin bonds have asked a New York court to authorize evidence-gathering ahead of a UK legal claim against the carmaker's debt restructuring. Arini Capital Management and Tresidor Investment Management lodged the application with the Southern District of New York, seeking to compel BlackRock-owned HPS Investment Partners, the UK arm of Authentic Brands Group, and advisers Moelis & Co and Lazard to produce documents and give testimony. The bondholders argue that the arrangement between Aston Martin, HPS, and Authentic Brands, which raised £450m in debt, left existing creditors worse off. Aston Martin said in July it had lined up borrowing of up to £550m ($748.7m) from an HPS-led investor group, comprising a £450m senior secured term loan alongside a £100m delayed-draw term loan, with a further £100m of permitted debt still available. The deal shifted some of the company's most valuable assets out of reach of existing creditors and weighed on its bond prices. According to the court filing, Latham & Watkins, acting for Aston Martin, argued the transaction is lawful and consistent with the bond documentation, but withheld most of the documents the bondholders had requested. Aston Martin is also due to drop out of the FTSE 250, a move expected to be confirmed after markets close on 2 September, which would formalise its small-cap status and remove it from the FTSE 350.